Oe Apr 2017
Oe Apr 2017
Oe Apr 2017
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EPIC SUBSEA PRODUCTION
Brownfield 28 Tiebacks 34 Well Intervention 38
Asset
Integrity
High-tech solutions 20
Offshore Engineer April 2017
Real change
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FEATURE FOCUS
Asset integrity
20 Testing high-tech solutions
for asset integrity
The impact of asset integrity is hard
to quantify, but UK North Sea goals
to tackle it, including using robots,
are being made clear. Elaine Maslin
reports.
24 Fighting fatigue
Intecseas Kirsten Oliver discusses
a new exible riser inspection tool
created in partnership with UK-
based Innospection.
26 Improving passive re
protection systems
MMI Engineering discusses issues
around passive re protection
integrity, and the launch of a new
industry network PFPNet.
Photo from iStock.
Features
46 A clean cut
Cutting and sealing has been combined into a neat package in
Interventeks Revolution valve design. Elaine Maslin reports.
DRILLING
EPIC 48 Gaining control
28 Ship shape Inow control valves and inwell ber-optics have given
Polymer steel composite repairs are becoming a popular Nexen far greater visibility of whats going in and out of their
solution for worn out plates in the growing oating reservoirs on the Golden Eagle eld. Elaine Maslin reports.
production vessel eet. Elaine Maslin reports. 50 Putting HSE in MPD
30 Browneld without the bother Theres a growing acceptance of MPD in offshore operations,
Satnam Shoker, of Step Change Engineering, details a new but are all options being considered? Jerry Lee examines the
automated, streamlined process helping to save time during RFC-HSE variation.
browneld modication work.
REGIONAL OVERVIEW: SOUTHEAST ASIA
SUBSEA 52 Stepping on the gas
34 GoM operators set sights on tiebacks While Southeast Asia has suffered during the downturn, a
Subsea tiebacks have emerged as the economical way to return to natural gas developments could drive sector activity
develop many Gulf of Mexico elds. Karen Boman reports. over the next several years. Steve Hamlen sets out the details.
vent
Well Inter
SUBSEA
34
Tiebacks
EPIC
Browneld
28
cover features the Oceaneerings
42 Installing ceramic sand screens
oedigit al.com
In an industry rst, achieved last year, 3M ceramic sand Millennium ROV during sea tri-
Asset ty
Well Interve
screens were deployed from a light well intervention vessel, Integsolri als in Norway. Read more about
ntion
utions 20
Asset
High-tech
44 Wireline wonders
Oceaneering Internationals acquisition of Blue Ocean Photo courtesy of Oceaneering
International.
April 2017
10 Global Briefs
News from the around the world, including discoveries,
field starts, and contracts.
16 In-Depth: Efficiency
Tackling costs head on with fresh no-nonsense thinking could prove
a boon for struggling subsea developments. Elaine Maslin reports on a
project that hopes to achieve just that.
TTradequip
radequip ooffers
ffers many
many ooptions
ptions
59 OTC Preview: Preparing for a new (low oil price) world when it comes to advertising to
Melissa Sustaita provides an overview of activities slated for this years
Offshore Technology Conference.
the oil and gas industry. Dont miss
the chance to cast your product
60 Solutions in front of an active buyer. Call
An overview of offshore products and services. today to learn about our multi-level
marketing approach.
61 Activity
Company updates from around the industry.
and subsea industry pioneer who recently won the MBE (Most Excellent
Order of the British Empire).
International
64 Editorial Index
ENHANCE YOUR
PRODUCTION, REDUCE
YOUR COSTS
To solve your subsea challenges in these dynamic times, Oceaneering does things differently, creatively, and
smarter by providing innovative light well intervention solutions. As your trusted subsea partner, our
unmatched experience and breakthrough technologies enable us to adapt and evolve regardless of market
conditions.
By working together, we will safely and reliably re-shape the future of the oil and gas industry.
People Whats
Weatherford names
Trending
Halliburton exec CEO
The right track
Weatherford International has
Moho Nord comes onstream
appointed Mark McCollum pres-
Chevron strikes oil at Anchor appraisal
ident and CEO of the company, Moho Nord. Photo from Total. Noble approved to drill Leviathan-7
effective this month. McCollum, an
Activity
executive with over 36 years expe-
rience in the oil and gas industry,
most recently served as execu-
tive vice
Mexico finalizes
president
7 deepwater pacts
and CFO at
rival service Mexicos National Hydrocarbons
company Commission (CNH) finalized
Halliburton. seven deepwater Gulf of Mexico
contracts, as part of the Pemex, SENER, CNH and Inpex officials . Photo from SENER.
countrys Round 1.4 held last
year. The Secretary of Energy Joaqun Coldwell said that the investments associated
Mark McCollum with the eight blocks awarded in Round 1.4, will amount to US$34 billion dollars.
GULF COAST
OIL DIRECTORY
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can now be found at gulfcoastoildirectory.com
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in oils future
Shaun Wymes
swymes@atcomedia.com
the heads of major oil and gas operators, am concerned that misguided projec- aleon@atcomedia.com
academics, foreign oil and gas ministers tions of peak demand and stranded European Editor
as well as regulatory authorities. petroleum resources may discourage Elaine Maslin
While the mood was optimistic, both on the trillions of dollars in investments emaslin@atcomedia.com
the floor and up at the podium, the mes- needed to underpin essential oil and gas Asia Pacific Editor
Audrey Raj
sage delivered from the oil majors was the supplies, during the long transformation
araj@atcomedia.com
same weve come too far to give up now. of our global energy system, he told the
The ultimate test of our ability to CERAWeek audience. Web Editor
Melissa Sustaita
learn is not in the crisis, but in the re- Dudley echoed a similar call to keep
msustaita@atcomedia.com
covery, said Statoils CEO Eldar Saetre investing in new projects and detailed
Contributors
on CERAWeeks opening day. BPs current workload.
Karen Boman
Now is not the time to relax and repeat Theres US$1.5-2 trillion in invest-
Steve Hamlen
our own mistakes from the past, he con- ment that has been cancelled or de-
Editorial Assistant
tinued. Now is the time ferred, Dudley said.
Jerry Lee
to fundamentally change The ultimate test of Were going to pay
how we run the indus- our ability to learn is a price for that, he ART AND PRODUCTION
Bonnie James
try in short, seizing the not in the crisis, but in warned. I will tell you
Verzell James
opportunity to strengthen the recovery. [that] BP is not planning
the long-term competi- on that. Were going to CONFERENCES & EVENTS
Eldar Saetre, CEO, Statoil
tiveness of oil and gas in plan as if the price of oil Conference Director
an increasingly complex energy space. is not moving up for the next five years Jennifer Granda
Statoil has always been a champion ($55-60/bbl). And, whatever price oil jgranda@atcomedia.com
of standardization and, again, Saetre ends up being, Dudley said that BP PRINT
called on the industry to embrace plans to bring on seven major projects Quad Graphics, West Allis, Wisconsin, USA
it, as well as simplification and lean this year, with the fi rst one slated for
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increased efficiency from the reservoir we have in the history of the company, Rates $99/year for non-qualifi ed requests.
to the market, we have brought down in terms of activity levels, Dudley said. $10 for individual copy.
the breakeven prices from our next-gen- In 2011, we had about 8 million man NOTICE: Print magazine delivery for free qualified
eration portfolio to well below US$30/ hours of activity across the company, subscriptions restricted to North America & Western
bbl, he said. and this year we will have 88 million Europe. All other regions will be receive digital
BP CEO Bob Dudley offered a similar from projects under construction format email address is required
Another item discussed during with construction costs coming in well DIGITAL
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invest in oil and gas projects, particu- Still, the drill bit will need to spin if Facebook: fb.me/ReadOEmag
larly offshore. the hopper is to be fed and this kind of Twitter: twitter.com/OEdigital
Saudi Arabias Minister of Energy, activity continue. Linked in: www.linkedin.com/groups/4412993
to Leviathan-5 to drill the to drill wells in the fourth and Premier (28.67%) operates Mobile Belt. The survey area
well to a fi nal depth of some fifth years of the PSC. Natuna Sea Block A with part- is characterized by exten-
5200m bsl, and fi nally move Posco Daewoo has acreage in ners KUFPEC (33.33%), PTTEP sional and compressional tec-
back to Leviathan-7 to drill neighboring Myanmar, which (23%) and Petronas (15%). tonic elements and displays
the well to a fi nal depth of the firm says is analogous. positive indications of active
approximately 5100m bsl. P CGG Philippines petroleum systems.
Leviathan-7 is in the I/14 O Premier project completed
Leviathan South and I/15 sanctions BIGP French geoscience firm CGG Q Chevron adds
Leviathan North leases, some Premier Oil sanctioned the de- completed its processing of to WA acreage
120km west of Haifa at 1630m velopment of the Bison, Iguana geoscience data on the Carabao Supermajor Chevron paid
water depth. The well will tar- and Gajah Puteri (BIGP) fields multi-client study, acquired US$2.3 million for a new
get pay in the Oligo-Miocene on Block A in the Natuna Sea offshore the Philippines. exploration permit in the
layers. offshore Indonesia. The study integrates more Carnarvon Basin, offshore
An invitation to tender than 8500km of new broad- western Australia, in WA-
N Petrobangla for long lead items has been band prestack time-migrated 526-P, which will last six
signs PSC issued and delivery of fi rst 2D BroadSeis data and com- years.
Bangladeshs state oil firm gas is targeted for Q3 2019, plementary marine gravity The new permit is in a
Petrobangla has signed a pro- Premier said in its full-year and magnetic data acquired gas-rich part of the Northern
duction sharing contract (PSC) 2016 results. with the seismic. Carnarvon Basin very close
with South Koreas Posco Bison and Iguana develop- The survey connects to the Gorgon gas project
Daewoo for deep sea block DS- ment concepts have been re- diverse sedimentary basins and Pluto LNG, offshore of
12 in the Bay of Bengal. ported as single well subsea across the Philippines from Western Australia between
The agreement includes a tiebacks to the Pelikan field. West Palawan (the only Onslow and Dampier, said
commitment to carry out 2D Gajah Puteri will also be a currently-producing basin Minister for Resources and
and 3D seismic surveys, within subsea tieback, 40km, to the in the country), across the Northern Australia Senator
the first three years, and then existing Anoa platform. Sulu Sea, to the Philippines Matt Canavan.
Contracts
Wood Group interface design, geospatial
design, detailed design, con-
struction, completions and
commissioning, marine man-
echo sounder, installed in a
newly designed gondola on the
vessel hull.
bags Mad Dog work information system support, agement, fabrication manage-
Wood Group has won two subsea controls engineering ment, procurement, and project Erin contracts
separate contracts related and geotechnical engineering management. The contract will Pacific Bora
to BPs Mad Dog 2 project to support. run for five years from March Erin Energy signed a drilling
provide engineering services 2017, with two one-year options services contract with Pacific
to the deepwater project in the West Capella to extend, and includes Brunei Drilling for use of the Pacific
Gulf of Mexico. lands Cyprus gig Shell Petroleums oil and gas Bora drilling rig at its Oyo-9
Samsung Heavy Industries Seadrill has secured a one-well assets in the South China Sea. well on the deepwater Oyo
awarded Wood Group a contract contract with Total for the field, offshore Nigeria.
to provide detailed engineering West Capella, offshore Cyprus. Fugro wins Under the contract, Erin
and procurement services for The contract is expected to Kenyan survey Energy has the option to drill
the topsides for BPs Mad Dog start in 2H 2017 and back- Fugro will execute a seabed sur- up to two additional wells. The
Phase 2 floating production unit. log, estimated at 50 days, is vey to detect natural leakages option to extend the contract, if
The US$80 million contract expected to be approximately of hydrocarbons for Shell-BG exercised, would be used to drill
follows the December 2016 US$10 million. Kenya. The seeps survey com- two of its offshore Nigeria explo-
completion of interim agree- The West Capella has recently plements a seismic exploration ration prospects in the prolific
ment period early work, which been upgraded with a managed program that was completed Miocene geological zone.
was valued at $4.5 million. pressure drilling system, which recently offshore Kenya. The contract provides
Additionally, as part of the is expected to be utilized as part Undertaking a four-week cam- for a base operating rate of
recently signed global services of the upcoming work scope. paign of multibeam data acquisi- US$195,000 per day. The rig
agreement with BP, Wood tion and precise sampling, Fugro can be used for both drilling
Groups Specialist Technical Amec in Brunei deal will mobilize its specialized and well completion.
Solutions business picked Amec Foster Wheeler won a survey vessel, Fugro Discovery, Erin Energy anticipates
up a $4.89 million contract major contract from Brunei to Kenya. Seabed sampling spudding the Oyo-9 in mid-June
for subsea engineering and Shell Petroleum (BSP) for will be carried out using a drop and first production from the
project management services the rejuvenation of assets corer and multibeam data will well to be in September 2017.
to the Mad Dog 2 project. That in Brunei. The work includes be acquired with the latest deep- The Oyo-9 is expected to add
work includes gas lift system concept, front-end engineering water high resolution multibeam an additional 6000-7000 b/d.
afglobalcorp.com/drilling
March of
the Penguins
With Shells Brent Charlie due to shut down in 2018, the supermajor has had
to find a new home for its Penguins cluster subsea tieback. Elaine Maslin
outlines the redevelopment plans.
Efficiency
Tackling costs head on with fresh no-nonsense thinking could prove a boon for struggling
subsea developments. Elaine Maslin reports on a project that hopes to achieve just that.
tive methods and technology; and hardware standardization. date comparison -6 -26 -24 4
The project has sought efficiencies and then developed and Note: Operators do not announce discovery dates 8-16in.
at the time of discovery, so totals for previous
years continue to change. Operational/
tested them through four theoretical subsea projects, a straw installed
82665 (82,548)
man exercise, involving a reference case subsea project being Reserves in the
Planned/
benchmarked by operators, and two actual field development Golden Triangle possible
47052 (47,396)
(one dynamic riser project, two tiebacks and one bundle proj- depth numbers reserves reserves
(mmbbl) (bcf) >16in.
ect) indicated 15-28% potential savings.
Brazil Operational/
The exercise saw similar potential savings, but highlighted 95,091 (94,967)
Shallow 14 350 2649 installed
the difference between global and local operator costs. Nine Planned/
Deep 13 1129 2835 42,903 (43,836)
operators (three UKCS-focused) marked-up the reference possible
Ultradeep 35 10,783 12,756
137,994
(base) case, which was broken down into the various subsea (138,803)
system elements, with their preferences, i.e. additional testing United States
or exotic material requirements. Shallow 6 27 71
Production
The results were predictable. Global operators added far
systems worldwide
Deep 20 1190 1602 (operational and 2017 onwards)
more specifications and preferences than North Sea-focused Ultradeep 15 2090 1950 (last
Floaters
players. As an example, the flexibles reference case (for 400m- month)
long and 1000m-long, 8in flexibles, for 200m water depth, and West Africa Operational 309 (306)
an 80C / 5000psi operating regime) was 1.6 million, with Shallow 120 3989 16,739 Construction/
42 (42)
Conversion
a 52-week schedule. That cost rose to 2.232 million (a 40% Deep 29 2640 3950
Planned/possible 291 (292)
increase) with an 84-week schedule (a 62% increase) for the Ultradeep 13 1761 2518
642 (640)
highest scoring global operator. Meanwhile, the highest cost Total 265 23,959 45,070
(last month) (266) (25,028) (44,430)
UKCS operator had put prices up to just 1.712 million. Fixed platforms
It was a consistent theme across the various reference case Greenfield reserves Operational 9094 (9107)
scopes, with pipeline and valve schedules standing out with 2017-21 Construction/
71 (70)
<120% added, on average, to the schedules on both by the Water Field Liquid Gas Conversion
depth numbers reserves reserves Planned/possible 1302 (1311)
global operators. For UKCS fi rms, the schedule increase was (mmbbl) (bcf)
10,467 (10,488)
<14% on pipelines and <40% on valves. Costs for the same Shallow 938 35,785 344,070
(last month) (967) 37,600) (355,948)
products were higher by <22% (pipelines) and <59% (valves) Subsea wells
Deep 136 6605 99,551
for the global operators, compared to <4% and <17%, respec- (last month) (149) (7992) (107,871) Operational 5078 (5076)
tively for the North Sea-focused operators. Develop 312 (280)
Ultradeep 74 15,839 46,887
The examples go on. Global operators added <69% cost (last month) (76) (16,274) (49,457)
Planned/possible 6361 (6390)
to the reference case for subsea trees, and <41% in terms of Total 1130 58,229 490,508 11,751 (11,746)
wells and appraise for more gas. Centrica will now test the Moving forward
results of the SSP project to increase their confidence in the The real test will be if this work now enables these projects and
project. others to move forward. Duthie notes that smaller operators
Efficiencies on West Wick were also based on taking an will be able to do more, with global players less able to reduce
alternative approach, i.e. using free hanging risers instead codes and specification requirements, etc. In real life, we would
of a caisson riser. This gave a big saving, Duthie says, at have more time to go into more detail, Duthie adds. It will also
34.14%, and also meant the flexibles scope could be reduced, be pick and mix, i.e. it doesnt have to be all or nothing.
using pre-qualified designs and not having third party deign How the benefits of this project can be captured also re-
reviews, etc. The subsea manifold and umbilicals were also mains to be seen. It would be nice to have so much input into
simplified, as at Pegasus West, and some 38.1% savings were every project, admits Riddell, but this isnt feasible. What
made on the projects valve scope by using materials supplied we need to do is pick the most difficult challenges and get in-
on standard material data sheets, using standard contractor dustry together and try to solve these challenges as a group,
sealing arrangements, cast bodies for gate valves, limiting the she says. We need to use that wider knowledge to try and
number of valve types, using contractor standard sizing fac- collectively solve the problems.
tors, using pre-qualified designs, having no welding or mate- Since we did this work they [the operators] are taking this
rial qualification and reducing documentation and inspection approach seriously and revisiting everything, Duthie says.
requirements. But, it takes more than just seeing numbers. Getting through
Savings of 26.27% were made in pipelines through material to development is another matter. There is still a permafrost
selection, inspection, qualification and installation efficien- among the technical authorities.
cies and the concrete mattress, trenching and rock dumping
scopes were also made more fit-for-purpose. Future goals
Overall, the saving on West Wick was 24.77% (or 8.19 While hardware standardization was a part of the project
million) from a 33.9 million scope, mostly through using and its title it was felt that this was a longer-term goal. We
alternative methods and technologies, accounting for 47.2% need solutions here and now, Duthie says. A lot of small
saving, followed by efficiencies in codes, standards and speci- pools are within tieback range. We dont need (new) technol-
fications at 29.4%, then processes, at 20.4%. ogy to develop those, we need to be efficient so investors get a
The review of West Wick suggested savings of up to 25% return. Here and now is about simplification and fit-for-pur-
on the subsea system about half related to design choices, pose. True standardization is modular, plug and play. Thats
and the rest from sustainable process improvements, Hinkley the long-term goal. But in the short-term, commercial sensitiv-
says. We are now in the process of understanding the results ity, IP, etc. make it difficult.
and learnings. In time, Duthie thinks that subsea equipment for small
Our project is at a very early stage, Hinkley continues. pools with more than five-year production lives will be
We are currently focused on verifying and validating the more like drilling equipment, i.e. hired on a project by project
results from the Subsea Standardisation Project against our bases and refurbished each time.
own internal engineering standards to fully analyze the fi nd- Meanwhile, the industry has the results of the SSP a
ings and potential savings. In addition, we are continuing to 18-page set of guidelines available from Oil & Gas UK with
analyze the subsurface which, alongside a number of other which to play. All involved hope that it helps unlock some of
important work scopes, will be critical to determining the those small pools and bring some much-needed development
economic viability of this small pool development. activity into the basin.
Testing
high-tech solutions
for asset integrity
The impact of asset
integrity is hard to
quantify, but UK North
Sea goals to tackle it,
including using robots,
are being made clear.
Elaine Maslin reports.
Fighting
fatigue Figure 1: A typical parameters in the design and continued
flexible riser operation is related to failure of the ten-
composition. sile armor wire layers because of fatigue.
images from Intecsea.
When risers are initially designed,
they have a significant in-built safety factor driven by the
uncertainty in the fatigue life of the tensile armor wire layer.
During early life, when the riser operates well within the
design limits, basic inspection is carried out in line with a
low risk categorization (e.g. DNV RP 206) (see Figure 2). This
means there is often very little inspection testing or monitor-
ing carried out.
As the riser approaches the end of its intended design life,
this lack of operational integrity data makes life extension
a challenge. Understanding the remaining fatigue life of the
riser and establishing whether any degradation of the tensile
armor wires has occurred has historically been both an analy-
Intecseas Kirsten Oliver discusses sis and inspection challenge.
a new flexible riser inspection tool
Inspection
created in partnership with While there are many non-destructive testing (NDT) inspec-
U
tion tools on the market, they have had their limitations.
UK-based Innospection. Figure 3 summaries the comparative techniques.
The Innospection MEC-FIT inspection tool enables degra-
nderstanding the condition of flexible risers as dation (cracking and corrosion) to be detected in up to three
they approach the end of their design life is not a layers of armor wire in both flooded and non-flooded annulus
straightforward exercise. conditions. The tool can be deployed by inspection remotely
Flexible risers are designed with a discrete design life that operated vehicle or directly from the facility using a low
includes significant safety factors to compensate for the un- capacity crane.
certainties in degradation associated with the complex layer A client used MEC-FIT for a UK North Sea Project to in-
construction associated with tensile armor, pressure armor, spect from the topside to about -30m on a flexible riser that
inner carcass and outer protective layers. had damage to the polyethylene outer sheath. The operator
The key benefits of flexible risers: decided to assess the wire condition of the main flexible riser
Enabling a permanent connection between floating facili- and neighboring risers.
ties and subsea infrastructure, where large motions are
experienced. Analysis
Cost-effective installation, ability to reel long lengths for Finite element analysis (FEA) is the predominant method
transport and handling, and diverless installation, which used to perform structural integrity assessments of
enables deepwater installations. complex components under various load combinations. Its
However, this means flexible risers are put under complex application to the simulation of flexible risers is common
dynamic stresses during operation, and one of the critical during the design phase, as well as throughout the asset
5
lifecycle in the form of life extension.
Probability
Flexible risers exhibit nonlinear behavior under bending, 4 Detective
largely due to the stick/slip interaction between the pipe wall
layers. However, capturing the highly nonlinear interactions 3
in a compliant system that can undergo large 3D translations/ Basic
2
rotations is currently limited by the computational efficiency
None
of commercial FEA tools. 1
This limitation has historically precluded flexible risers
from being assessed using high fidelity irregular wave fatigue A B C D E
methods, rather necessitating a regular wave approach with
increased uncertainty and overarching assumptions. API RP
Consequence
17B1, Section 5.7.1 states: The limitation of the regular wave
approach is that the results can be difficult to interpret for
systems whose response is strongly dependent on frequency. Figure 2: Example of risk-based integrity strategy (DNV RP 206)
It is often impossible to determine whether the result is
conservative or un-conservative, particularly in the case of that the fatigue life can be extended for situations where the
flexibles where estimation of the natural periods can contain original design life has been compromised. While the Flexas
significant uncertainties. simulation approach may be considered more accurate, it
Intecsea developed a simulation-based approach where is specific to configuration and environmental loading and
nonlinear dynamic substructuring (NDS)2 is leveraged for therefore needs to be assessed on a case-by-case basis; this is
efficient computation of the large scale nonlinear simulations. clearly a significant enhancement on the basic design premise
This approach, enabled by a proprietary FEA solver (Flexas), regular wave analysis.
has been fully validated for dropped object simulations3 and The Flexas approach has the additional benefit that dam-
for accurate prediction of detailed local stresses in unbonded age can be incorporated into the detailed local model, and
flexible risers4. therefore any metal loss or cracking detected by the MEC-FIT
The technology uses simplified beam elements, and elimi- inspection can be also be modeled.
nates the need for additional local model analyses. Instead,
the full detailed internal layer geometry is simulated either Kirsten Oliver is the Brownfield and Asset Management Lead
with global tension/curvature time-history inputs, or directly at Intecsea. FlexIQ is a strategic alliance between Innospection
within the global riser configuration under irregular wave and Intecsea that enables inspection and computational
environments to extract wire stress time-histories5. simulation techniques to be delivered as part of an integrity
The following example demonstrates how the conservatism management framework.
in fatigue life calculations using regular waves (typical during
design phase) can be quantified using an approach incorporat- 1
API Recommended Practice 17B. Recommended Practice for Flexible
ing Flexas NDS. Pipe.
The wire stresses were extracted from the following loca- 2
A Nonlinear Dynamic Substructuring Approach to Global Dynamics of
tions: the cross section under the bend stiffener, the wire Flexible Riser Systems, Arya Majed and Phil Cooper , ASME 2014, 33rd
corners inner armors at 16 locations and wire corners outer International Conference on Ocean, Offshore and Arctic Engineering
armors at 16 locations. Volume 6B: Pipeline and Riser Technology.
Post-processing of the wire stresses was carried out to gen- 3
Arya Majed (Intecsea), Antoine Dutertre (Total), iSOPE-2015,
erate fatigue spectra for both the irregular and regular wave International Ocean and Polar Engineering Conference
cases to enable a comparison of wire damage ratios. Analysis 4
Michel W Dib, Philip Adrian Cooper, Shankar Bhat, Arya Majed
demonstrates that the predicted damage from the regular (Intecsea) Offshore Technology Conference May 2013
wave cases is in the region of 6-7x greater than for the Flexas 5
Majed, A., Cooke, N., Chinello, L. (Intecsea), Gomes, J. (DeepStar),
simulation based irregular wave cases. This equates to a Yiu, F. (Anadarko) and Kusinski, G. (Chevron), New Generation
potential 7x increase in fatigue life using the Flexas approach. Computational Capabilities in Nonlinear Dynamic Simulations of
Using Flexas irregular wave modeling increases confidence Flexible Riser Systems, OTC 2017, Houston, Texas.
Ext scan under water, slow Static ext. mounted measurement Static spot RT shots Dynamic fast scan
Detect flooding of annulus and Detects cracks, corrosion (limited min Detection of corrosion (pitting) cracks, wire
Detect fatigue failure and through
thickness of outer tensile armor wall loss detection), loss of interlock in misalignment in tensile armor later 1 and 2.
cracked wires
layer only if flooded pressure armor layer Loss of interlock in pressure armor layer
Improving passive
fire protection
systems
UK-based technical consultancy
MMI Engineering discusses issues
around passive fire protection
integrity, and the launch of a new
industry network PFPNet.
EPIC
using SPS, with a squad comprising before setting in a 10-minute exothermic
two IE staff (a project manager and reaction, bonding the plates together.
an elastomer injection engineer) and Everything is measured and tested
six local welders and platers from humidity, hardness of the polyure-
Cameroon Shipyard and Industrial thane, and sample tested after 24 hours,
Engineering. The SPS repairs, com- Nash says. The cavity is then sealed by
prising a 10mm top plate and 25mm welding in the ventilation ports and the
elastomer core, covering 25sq m, and repair is complete.
approved by Bureau Veritas, took just To do this work conventionally,
under a month, from 30 August to 29 we wouldve had to take some seri-
September. ous measures, Nash says. Because the
After the Komi Kribi 1, some 96sq m thinned plate is left in place, removal
of steel across five different areas was works are avoided. Also, all hot work is
reinstated on the FPF-003, in Southeast done away from the shell of the vessel.
Asia on station at Mubadalas Jasmine Classification rules mean you cannot
oil field in the Gulf of Thailand. weld directly to steel that has water on
the other side of it, because the weld
FPF-003 would cool too quickly and cracks could
The FPF-003 is an ABS-classed vessel, form, Nash says. Instead, IE uses the
built in 1976 and converted in 2005. hulls strengthening members to weld
The repair work, carried out with EM&I to, where the plate needs to be added to
and steelworkers Altamar, covered the areas of the hull.
engine room bilge, engine room side
shell, pump room bottom shell, forward Further ideas
cofferdam bottom shell and bulk head IE has more ideas for where this tech-
nique can be used. The work with BP on
Glen Lyon gave IE an idea for enabling
vessels to carry marine gas oil (MGO), in
order to meet the 1.1% sulfur emissions
regulations. SPS enables vessels to hold
both heavy fuel oil, which is kept at 80-
90C to achieve the required viscosity,
and (the more environmentally friendly)
originally thought or MGO, which needs to be kept below
that the maintenance 40C, Nash says. SPS provides a ther-
wasnt as good as it mal barrier between the two tanks.This
could have been, has been successfully installed on a
Nash says. For a con- number of vessels for a leading UK oil
ventional below the major.Not only does SPS provides an
water line repair on efficient thermal barrier, it also maxi-
an FPSO, a cofferdam The FPF3 team. mizes available storage space as there
would fi rst need to is no need for void spaces between the
be installed and then divers deployed, and main deck. The work started on 2 tanks which would require through-life
Nash says. The time it takes them to do October and completed on 3 November, inspection.
the work could vary. The alternative is 15 days ahead of schedule, with no dis- It has also been using SPS for side
to take it off station and tow it to a yard, ruption to the vessels day to day opera- shell protection, instead of fenders,
which operators want to avoid. Instead, tions, despite the multiple complex and and is offering the solution for ice-class
Nash says that IE can deploy a 4-5-man space constrained areas to be repaired, strengthening.
squad to do the job, while the vessel resulting in four machine and equip- Despite composites not always get-
remains in production, without the need ment moves, and atmospheric working ting a ready reception, IE appears to be
for divers. temperatures of 35C. making in-roads. There was resis-
The process involves cleaning the tance in the early days, because it is a
FSO Komi Kribi 1 corroded steel, with grit or sandblast- new technology and you have to push
The fi rms fi rst below water line repair ing, then welding perimeter bars around through the traditional barriers, Nash
was in 2013. Last year, the fi rm did the area needing reinstating, creating says. Using steel is generally what
six such repairs. One was on the FSO a picture frame. A top plate is added to they wanted in the early days. But,
Komi Kribi 1, converted in 1977 from the bars, creating a cavity. This is leak [now] we are an established company
a very large crude carrier and oper- tested before the polyurethane elasto- with a huge portfolio of projects around
ated by ExxonMobil for Cameroon Oil mer, which is brought to the site in its the world.
without the bother Satnam Shoker, of Step Change Engineering, details a new automated, streamlined
process, which helps save time during brownfield modification work.
I n a mature basin,
such as the North
Sea, brownfield
modifications work on
facilities designed up to
Brent Alpha
One such project, for oil
major Shell, on the Brent
Alpha platform in the UK
North Sea, enabled 70%
40 years ago, but need cost savings, using Step
to continue producing, Change Engineerings
can be a challenge. method, compared to a
Access to pipework, conventional scope.
bed space for inspec- During early 2015,
tion personnel, logis- Step Change Engineering
tics, etc., all add up and approached Shell with a
can challenge project solution for brownfield
economics. modifications, including
What if you could like-for-like pipework and
s t r e a m l i ne a l l t h at structural steel replace-
work, remove the need ment, often referred to as
for specialist inspec- repair orders (ROs) or mate-
t ion person nel, a nd Single sheet work pack. Image from Step Change Engineering. rial and corrosion defect
use design data auto-gen- reports (MCDRs).
erated from handheld infrared (IR) scans, can be produced onto a single A3 con- Initially, there was a degree of caution
which can then also be quickly converted struction worksheet containing the MTO, and a series of practical demonstra-
into engineering drawings for fabricators? job cards, resource requirements and con- tions and testing were done to prove the
Aberdeen-based Step Change Engineer- struction activities. Detailed workflows technology, including its accuracy and
ing is doing just this. The firm has devel- can also be created in the system, such suitability for offshore use.
oped an automated, streamlined process as client and contractor responsibilities, Following successful trials, Shell
for like-for-like and small- to medium- which can be tailored to suit a clients issued Step Change Engineering with a
sized modifications. Its workflow covers requirements and procedures. contract in July 2015 to design and fabri-
all stages of a project scope, from work Using client-owned handheld scan- cate an existing MCDR scope.
initiation, technical appraisal, conceptual ners, on which staff can be easily The initial MCDR selected by Shell
study and detailed design through to pro- trained, immediate savings on time was to replace an approximately 6m
curement, delivery of materials, offshore and cost can be made, with rope access length of a corroded section of pipework
construction support and closeout. technicians able to use the devices in in the 6in exhaust line of a diesel engine
The system is based on three ele- hard to get at areas avoiding the need on one of the Brent Alpha fi re pumps.
ments: offshore data capture, using for scaffolding. One of the challenges with this scope
handheld IR scanners; 3D modeling and For minor modifications and spools was that the exhaust pipework was dif-
design work (using the IR data); and we have confidence in the manufac- ficult to access and high-up.
then automated deliverables output turers quoted figure of 0.5% accuracy.
i.e. engineering drawings are generated Flange offsets and bolt-hole orientation Traditional approach
automatically, directly from the design would be measured by traditional meth- Conventionally, the inaccessibility of
applications, using the fi rms software. ods. Caution should be exercised where the pipework would have required a
This can include various structural less than +/- 1mm accuracy is needed. large scaffold platform to be erected to
and piping design deliverables, includ- Step Change Engineering has been ap- allow safe access, initially for a piping
ing piping isometrics/general arrange- plying this technology in the UK North designer to perform a detailed design
ments (GAs), perspective GAs, line list, Sea on several platforms and floating survey, and then for the offshore con-
structural GAs, fabrication drawings, production systems, covering multidis- struction team to carry out the neces-
bill of materials/material take off (MTO), cipline and single discipline modifica- sary destruct/construct scope required
and a construction worksheet. tion scopes at concept and front-end to replace the corroded pipework spools.
For simple scopes, the entire work pack engineering and design stages. For this job, which was typical of many
brownfield repair/replacement type who were trained to use the scanner Key benefits
scopes, such offshore scope elements beforehand and are part of platforms core The rapid data capture and auto-
extend the project schedule and add construction team. The scanned data was generated deliverables resulted in a
significant extra cost, particularly in rela- emailed to our onshore design team where significantly reduced project schedule.
tion to the onshore design and fabrication it was imported into our 3D modeling and Piping isometric drawings were auto-
requirements, which often are a relatively design applications suite. generated with detailed fabrication
small proportion of the overall cost. Once the pipework was modeled, fur- information including the necessary
ther cost and schedule efficiencies were piping cut lengths and weld prepara-
Our approach achieved by auto-generating a range of tion details, which avoided the need
Step Change Engineerings workflow deliverables directly from the model. for the fabricator to mark-up the draw-
allowed an alternative solution to be This took less than four hours, includ- ings (as would be the case traditional-
proposed, i.e. deploying rope access ing checking. ly) and further helped to reduce overall
technicians to perform both the design For this first MCDR scope, Shell in- delivery time.
survey and the construction scope. This curred a one-off cost for training the rope Overall, the data capture, design
addressed the main cost/schedule issues access technicians, which Step Change and fabrication scope was completed
by avoiding the requirement for scaf- Engineering carried out at its premises. with materials delivered within ap-
folding and eliminating the need to use Shell had already purchased a hand-held proximately 1-2 weeks, compared to
a piping designer to perform the survey. scanner for use on the Brent platforms an estimated 4-8 weeks doing it the
Survey data was captured in less than and Step Change Engineering simply traditional way.
30 minutes using a portable hand-held updated the software and tested the unit Cost savings exceeded 70% when con-
scanner by Shells rope access technicians, to ensure it would be compatible. sidering the requirements for scaffold-
ing and dedicated design survey were
Brent Alpha in 1977. eliminated from the scope.
Photo from Shell. Another recent project for Shell
included the development of a concep-
tual design for installing a temporary
pig launcher. The study was completed
within one week, including the survey
time, compared to 4-8 weeks conven-
tionally. Deliverables included a 3D
CAD model, construct/destruct piping
and instrumentation diagrams, destruct
isometrics and a perspective GA with a
detailed bill of materials.
0 P/C Age
10
nc
Top
2016
sights on tiebacks
Even though the downturn has changed many operators initial renewed sanctioning activity picking up
from 2018 and onwards, Ellekjr adds.
plans, subsea tiebacks have emerged as the economical way to Rystad expects 15 dedicated tieback
develop many Gulf of Mexico fields. Karen Boman reports. projects to come online from 2022-
2025. However, the commerciality for
these projects is more uncertain than
those starting production from 2017-
2021.Many of theseprojects haveal-
ready beensanctioned by operators,
Ellekjaer explains.
T
fields that might be fast-tracked into de-
he global oil price downturn and greenfield floater projects came velopment or non-commercial fields that
prompted oil and gas operators to online, says Fredrik Folmer Ellekjr, are reclassified as commercial.
delay or cancel plans for offshore project manager, Rystad Energy. Investment is pulled back for many
field development in the Gulf of Mexico Capital expendituresforbothfloaters reasons, Khan stated.
(GoM), including subsea tiebacks. and tiebacks in theUSGulf of Mexico Lower oil prices can make it hard to
As a result of the downturn, Rystad also declined from2012-2015levels of justify a multi-billion dollar deepwater
Energy expects only nine dedicated approximately US$20 billion per year to project when compared to a low-cost on-
subsea tiebacks to start production from $16 billion in 2016, Ellekjr says. He shore project, he explains. The short
2017-2021, down from 31 dedicated sub- expects this spending to fall to around lead time also factors into the decision
sea tiebacks to existing fields that came $12 billion, then flatten towards 2021. making process in the current environ-
online from 2012-2016. During that We expect spend to increase post ment. Deepwater projects take much
time, 43 tiebacks for both existing fields 2021 with higher activity levels due to longer to develop than onshore projects
SUBSEA
ating a positive return on investment.
Whats next?
Over the next two years, Wood
Mackenzie expects three major subsea
tieback projects to take place in the GoM.
These projects include Shells Kaikias
field, which the supermajor said in late
February that it would develop via six
subsea wells to Shells Ursa produc-
tion hub. Greater efficiencies in Shells
drilling strategy will enable a two-year
timeline from sanctioning of Kaikias
first phase to first oil in 2019, and also
save the company millions, Khan says.
An aerial view of McDermotts Gulfport, Mississippi,
What Wood Mackenzie is starting to
spoolbase, which opened in 2015.
see now is operators drilling wells with
the belief that hydrocarbons will be en- these wells will be pricey, with break- new subsea production system located
countered, and designing the appraisal even prices estimated at around $40/bbl approximately 2mi south of the existing
well so it can be turned into a develop- (Brent). The other reason is that LLOG Thunder Horse platform by relying
ment well, says Omar Garza, research had previously focused on smaller sub- on proven standardized equipment and
associate with Wood Mackenzies deep- sea tiebacks or other plays such as the technology rather than building custom-
water Gulf of Mexico team. Before even Miocene and Pliocene. ized components, the company said in
announcing the sanction, Shell already The industry is interested to see how January.
has been drilling development wells LLOG, someone with a proven track BP also recently sanctioned the sec-
and plans to convert appraisal wells to record in other areas, will fare in the ond phase of its Mad Dog field develop-
producers. This involves more of a paral- play, Khan says. ment project in the GoM. According
lel process than seen in the past, when To economically justify a standalone to Rystads estimates, Mad Dog 2 was
operators drilled a well, then went back development, a field would have to sanctioned at a breakeven oil price right
to the drawing board to see what kind of contain around 200 MMboe, Khan says. above $50/bbl. Shenandoah and Vito,
development plan made sense. But, proximity to existing facilities the two next floater developments in
Anadarko Petroleums Constellation and available processing capacity also line in the GoM, are also expected to
field is another widely anticipated GoM would factor into the decision. However, have breakevens lower than $60/boe.
subsea tieback project. BP, the former Wood Mackenzie expects facilities to McDermott International also is see-
operator of Constellation, still maintains become cheaper due to falling costs and ing majors and smaller independents
an interest in the field. At 50 MMboe, available capacity in fabrication yards. pursuing a few smaller subsea tie-
Constellation formerly called Hopkins Lower costs could make 150-200 MMboe backexisting infrastructureprojects in
would be too small for BP to develop fields economic now compared with the GoM, says Scott Munro, vice presi-
as an operator. three years ago, Garza says. dent of McDermotts Americas, Europe
But, cash flow remains king [in the Prior to the oil price downturn, opera- and Africa division. In late 2015, the
oil and gas industry] and everybody tors were talking about pursuingpros- engineering, procurement and construc-
needs it, Khan says. Given the proj- pectslonger fromexisting infrastruc- tion fi rm opened a newspoolbasefacil-
ects relative cheapness, it makes sense tureandin increasingly deeper waters. ity at Gulfport, Mississippi, to support
for BP to maintain an interest. The trends of longer and deeper subsea its flex-lay, rigid pipelay vessel North
In its Q4 2016 earnings report, tiebacks have halted with the oil price Ocean (LVNO) 105.
Anadarko said that it would likely collapse, andRystad does not anticipate The LVNO 105 has worked on smaller
tieback its Warrior exploration well to deeper field developments to come on- subsea tieback projectssuch as LLOGs
its Marco Polo facility. Additionally, the line thathave not been discoveredyet, Otis field and Anadarkos Caesar/Tonga
company may tieback the Phobos ap- Ellekjr says. Phase 2, Munro says.
praisal well to its Lucius facility. Were not going to push thetechni- McDermotts flex lay vessel North
LLOG Explorations subsea tieback of calboundaries in the next five years in Ocean 102 has worked on several subsea
the Lower Tertiary discovery Buckskin, terms oftiebacklengthin the US Gulf of tieback projects in the deepwater GoM,
to what Wood Mackenzie believes will Mexico, Ellekjr says. including ExxonMobils Julia project
be the Lucius platform, will be another The industrys focus on keeping costs and Chevrons Jack/St. Malo project.
subsea tieback project that industry low is allowing new subsea produc- McDermotts Derrick Barge 50 also has
will follow closely. One reason is that tion to move forward. In January, BP installed equipment packages on exist-
the Lower Tertiary is viewed as a major brought online the Thunder Horse South ing Gulf facility topsides to accommo-
growth region for the deepwater GoM, expansion project 11 months ahead date subsea tiebacks, Munro says.
but little production data is available of schedule and $150 million under
for the play. Even as subsea tiebacks, budget. BP was able to complete the
by the numbers
With large-scale projects on hold, subsea tiebacks are operators opting for cheaper, near-term
new production, instead of larger stand-
accounting for 75-80% of sanctioned projects. Will it last? alone projects.
Elaine Maslin shares Wood Mackenzies view. Suppliers and contractors need the
work. After a record high 547 subsea
tree orders in 2013, just 66 had been
ordered by the end of Q3 2016, Hall told
the SUT event. The expectation is that
by the time the numbers are
fully in, the total for 2016 will
Statoils Bryding
be just 85 subsea tree orders,
tieback layout.
Images from Statoil. he says, outlining Wood
Mackenzie research. Things
will look better in 2017, at
about 100 orders. But, its still a far cry
from 2013 and the industry isnt likely
to see those figures again anytime soon,
he says.
The proportion of projects driven by
tiebacks has increased and continues to
increase, however, he says, with 80% of
subsea trees ordered destined for
tiebacks in 2016 (compared to 52% in
2015, 62% in 2014, and 29% in 2013).
But, that is expected to fall to 59% next
year, then gradually drop to 51% by
2020. Our expectation is that the new
norm, resetting the former 400/year
average, will be closer to 200-250 trees a
year in the next 4-5 years (or 150-170 if
you take the gloomy view). But, it only
T
takes a couple of projects to bump up
he last 24 months has been sanctioned in 2016: just Utgard, Dvalin those numbers, Hall says.
about survival, cutting costs and Trestakk (tiebacks) in Norway, Zohr It is the oil majors Shell, BP,
and deferring projects, with and Atoll in Egypt, and Greater Enfield ExxonMobil driving most of the
the goal of bringing down breakevens. in Australia (deepwater subsea tieback), tieback activity, Hall says, plus
Projects that in 2013 had US$80-85/ plus KG-DWN (deepwater) off India, and Brazilian national oil fi rm Petrobras,
bbl breakeven costs have been brought Tangguh Phase 2 (two new platforms), which is supporting a high proportion of
closer to $65/bbl, using synergies and off Indonesia. the short-term tieback activity. Other na-
going back to the drawing board, says In 2017, projects FIDs are expected tional oil fi rms, such as Eni and CNPC,
James Hall a director at analyst fi rm to focus on greenfield developments in are likely to join in as time goes on.
Wood Mackenzie. Brazil, East Africa and Russia. But, even By region, the Middle East will see a
In fact, the fi rm has tracked a 40% with more FIDs in 2017, the benefit will small drop in tieback activity, at about
drop in offshore capex spending take time to trickle down into the chain, -3%, as will Asia, at -8-10%, compared
since 2014, Hall told the Society of except for those in front-end engineer- to an average global increase of about
Underwater Technologys (SUT) January ing roles, Hall suggests. 16%, Hall says. Australasia will see
Global Market Outlook briefi ng. But, One area that has seen an increase in the biggest increase, from about 46%
much of the activity over the past activity is subsea tiebacks, which could of orders to 55%, according to Wood
two years is yet to filter through into help prop up the subsea, umbilical, Mackenzies forecasts.
fi nal investment decisions (FID), with risers and flowlines (SURF) market in After a good start in 2017, with the
relatively few projects above 50 MMbbl the short- to medium-term, with many award of Mad Dog 2 subsea production
SUBSEA
order is expected to come Hall warns.
from Eni, with 20 subsea Subsea fi rms shouldnt
trees anticipated for the put all their eggs in the
West and East hub project subsea tieback basket either.
offshore Angola; followed By the end of the decade,
by Premier Oils Sea Lion in subsea tiebacks are likely to
the Falklands, at 14; Hess drop to about 50% of new
Tubular Bells in the Gulf of tree orders, Hall says.
Mexico, at 10; Totals Zinia There are swathes of
(Pazflor Phase 2), at 9, and projects out there waiting
Rosa (Girri tie-in), at 8. Then, fi nal investment decision,
theres Tullows Mahogany Hall says. In our view, its a
East (7), Hess Stampede (6), waiting game.
Anadarkos Constellation (6), Looking at produc-
and BPs Azeri (6). tion facilities in general,
The rise in tiebacks means there could be 20 getting
a rise in SURF installation through FID in the next
work, especially given a couple of years, based on
35% increase in the aver- a breakeven $60/bbl oil
age length of sanctioned price. Most will be floating
tiebacks, expected in 2017. production facilities, Hall
Some 75-80% of projects are says. Southeast Asia will
being driven by tiebacks, see many these, followed
Statoils Utgard tieback, an artists visualization.
Hall says. Indeed, tree awards by the Middle East, where
in 2016 were 80% driven by tiebacks, rise in SURF installation work may not activity would be driven by brown-
he adds. come for some time yet, leaving con- field developments, as well as East
BOE-Offshore-Engineer-half-page-Mar2017.qxp_Layout 1 16/03/2017 09:40 Page 1
But, because of the lack of FID deci- tractors to rely on their ever-dwindling and South Africa, home to large gas
sions in the past couple of years, that backlogs. If we dont see FIDs on some projects.
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station
Elaine Maslin chats with Helix
Energy Solutions to find out
how the intervention services
provider is keeping afloat with
new collaborative offerings, and,
yes, new vessels entering the
market.
Both moves are set to reduce down- is being built by Sembcorp Marines one has money, so we need to be more
time and increase staff safety. The ITF Jurong Shipyard in Singapore and is due efficient. The whole idea is to make the
is designed to increase efficiency and in service in 2019. Once complete, the process safer, better, faster and cheaper.
safety, says David Carr, vice president unit will also have a Huisman MPT. The result is a step change.
Commercial, Helix. It will take all man Northeast England engineering fi rm Hanging off each vessels Huisman
riding out of the process and provide Osbit designed a string of new systems heave compensated MPT, the ITFs form
a walk-to-work system so staff can get for all three newbuilds, having been ini- a tensile connection between the well
right up close to heave compensated tially awarded the ITF contract in March riser and the vessels handling equip-
equipment that is bouncing up and 2015. Osbit had previously worked with ment during well intervention opera-
down, without having to wear riding Helix on its Seawell refit and designed tions, while also facilitating safe access
belts. It is a real step change in use of some other equipment umbilical into the riser. The entire ITF effectively
technology to increase efficiency and guide wire system and ROV launch and stays stationary as the vessel moves, so
safety in operations. recover systems for the Q7000. that subsea equipment, including the
The 158m-long, 31-beam, DP3, Salt Helix came up with a brief outline of riser, isnt damaged.
307 WIV design Siem Helix I and 2 were what they wanted, says Steve Binney In normal run of operations, the riser
completed at the Flensburger shipyard Osbit engineer and project owner. sections, with subsea stack attached
in Germany (owned by Siem Industries) The industry used to have someone on to the bottom, would be built down to
in 2016, and will be chartered from the moving equipment on a man riding 5-10m from the seabed. Then the ITF
Siem Offshore (part of the Siem group). crane. It was probably something that would be attached, active heave com-
Both will work for Petrobras, under started as a one-off but it took a compa- pensation (AHC) mode initiated and the
four-year initial term contracts, offshore ny like Helix to be building new vessels stack connected to the well. The gang-
Brazil, with the Siem Helix I starting to start thinking about how to move way would be connected before going
operations in Q2 and the Siem Helix 2 away from that. into AHC mode.
due in service later in the year. Brendon Hayward, Osbits manag- To this is added the maintenance
Both vessels have accommodation ing director, says: In parallel to that, tower, with a 120-tonne crane, to build
for up to 150, a Huisman multipurpose the market is driving people to look for and service the stacks, and pivot for
tower (MPT) and a 250-tonne, down to efficiencies and competitive advantage. connecting to the ITF while active, and
3000m water depth crane. The Q7000 Because the oil prices have dropped, no the movable deck, which slides to the
Installing ceramic
sand screens
have been in the ground since 2011 (the
fi rst deployment) that are still function-
ing, to our knowledge.
This quality can add real value, com-
In an industry first, achieved last year, 3M ceramic sand pared to metallic screens, in highly cor-
screens were deployed from a light well intervention vessel, rosive and erosive environments, such
as high-flow wells, high-rate gas wells,
Helixs Well Enhancer.
and high-pressure and high-temperature
(HPHT) wells as well as preventing prop-
pant flowback, Earl says.
The screens are manufactured with
a metallic base pipe, with a stack of
ceramic rings providing the sand filter
mechanism.The rings are technical ce-
ramics, manufactured in 3Ms Kempton
plant, Germany, from Silicon Carbide.
The rings are spaced to allow gas/
fluids through, but prevent any sand in-
gress, says Ian Hunter from 3M Oil and
Gas, Advanced Materials Division. The
sizing can be changed during manufac-
ture depending on the size and distribu-
tion of sand to suit the application.
3M manufactured the fi rst screen in
2011, and has since had 25 installations
worldwide to date, including 17 off-
shore. This number was set to increase
Deploying the screens throughout February, Hunter says.
offshore last year.
The main challenge on Gannett was it
Photos from 3M.
had not been done before, Hunter
S
says. Additionally, there were
and has long been one of the major more space restrictions, more vessel
challenges for oil and gas operators movement, height restrictions on
and service companies as it can the wireline mast, compared to a
seriously limit production. rig, he says. But, in terms of the
For the most part, metallic sand technology, there is no difference
screens are used. However, 3M has de- to us deploying from a rig or a ves-
veloped a ceramic sand screen. 3M chose sel, it is just a change in planning.
to use ceramics due to their resistance The screens can be deployed via
to erosion or corrosion, compared with wireline, coil or by a rig pipe, for
3Ms ceramic sand screen technology.
metal, in harsh downhole environments. example, and we have both retrofit
The firms ceramic sand screen technol- The aim of the project was to prove that and standalone versions available.
ogys deployment last year, on Shells a cost-effective intervention and installa- The screens were deployed in April
Gannet field in the Central North Sea, was tion of ceramic sand control technology 2016 and took about 12 hours to install.
the first time the technology was used by was possible, with a viable return on It would take a similar time on a rig due
a major. It was also the first time one of investment. Using a LWIV, rather than a to the wireline deployment, Hunter says.
the ceramic screens has been deployed rig, was key. However, with the LWIV there was less
using a light well intervention vessel Using ceramics, which have better mobilization and demobilization time.
(LWIV). long-term wear resistance than metal The screens are capable of being run
The screens were deployed using e- screens, also helps improve the long- in any well, however, Hunter says that
line, with each screen hung from a high term viability of the well, says Martyn they have significant technical advan-
expansion Interwell packer. Earl, business development manager, tages in high flow wells, high rate gas
One, 40ft section of screen, which Advanced Materials Division, 3M. wells, HPHT wells, and for prevention
comprised six ceramic modules, was The ceramic wont erode/corrode of proppant flowback. Thanks to their
deployed on the Gannett well (each whereas as metal will in certain condi- longevity, they would offer advantages
ceramic module is about 5ft-long). tions, he says. We have screens that in such wells subsea, he adds.
1. 3.
2.
4.
5.
www.teledynemarine.com/energy
Wireline
PRODUCTION
wonders
intervention system (BORIS). This sys-
tem is similar to IRIS, but its four main
barriers two gate valves (one at the top
and one at the bottom) and two rams
are split into two sections, with a con-
nector, so that the smaller (compared to
Oceaneering Internationals OceanNext for Oceaneering, and one of IRIS) 7-1/16in upper section with a ram
the founding members of Blue Ocean. and gate valve can be removed. The low-
acquisition of Blue Ocean
We had to do it riserless, so we in- er 13-5/8in bend capacity section with a
Technologies is set to stalled flexible lines to the well to do 7-1/16in gate valve and ram remains on
what we needed. the well and interfaces with a
reap returns in terms of
Blue Ocean then developed riser package.
new technology. a system for downed wells for These systems are notewor-
work on undamaged wells. The thy as they are able to work in
Elaine Maslin reports.
result was the interchangeable deepwater and ultra-deepwater,
W
riserless intervention system because the grease supply to the
hen Oceaneering (IRIS), which interfaces with the pressure control head is subsea,
International bought Blue Xmas tree to allow a wide range Crawford says. Wireline ser-
Ocean Technologies last year, of intervention operations, vices in shallower water supply
Neil Crawford
it was a strategic move. Buying the Texas- including using e-line, slickline the grease from the surface, but
based firm adds a strong track record of or braided wire; running, setting and this wouldnt work in deeper waters. On
wireline intervention to Oceaneerings pulling tubing and tree plugs; pumping IRIS and BORIS, hydraulic power is used
own record, including setting deepwater cement plugs; and logging while flowing, from the surface to hydraulically pres-
wireline intervention operation records. perforating and fishing. It incorporates surize the grease subsea.
The move is also set to give Oceaneering a hydraulic control system, a patented Because we are able to put all types
the capability to roll out what could be a grease injection/sealing system and of wire through our pressure control
riserless industry first in late 2018. electric hydraulic controls through an head, such as big braided wire all the
Blue Ocean was originally set up to Oceaneering umbilical system. way to slickline, we are able to deploy
perform downed well remediation after IRIS can be deployed from a 328ft- tools that others are developing in order
hurricanes Katrina and Rita category long (100m) DP2 vessel of opportunity to do more in the well, Crawford says.
5 storms that hit the Gulf coast states (through the moon pool or over the side) These tools range from the most basic
of Texas and Louisiana in 2005. We with a knuckleboom crane, and is rated wireline tool to electric tools that can
couldnt get a rig to kill the wells, says for 10,000ft (3048m) of water depth and run into the well.
Neil Crawford, now vice president of 10,000psi. The system can work on both This IRIS system has already proved it-
horizontal and vertical trees. self in up to 8200ft (2499m) water depth,
Subsea Pressure Control Head. Oceaneering, meanwhile, has a track where it set a record for the deepest water
A clean
winners on page 61), is designed to
cut slickline, braided cable and coiled
tubing during intervention operations,
should the need arise, and then, contain
cut
well pressure. It can cut intervention
media up to and including 2in outer di-
Cutting and sealing has ameter, 0.203in wall thickness, 147 KSI
been combined into a neat tensile strength coiled tubing. A slim
design, through use of a rotary actua-
package in Interventeks
tor, means it can be used in in-riser and
Revolution valve design. are not short of offerings. slim-line open water interventions.
Interventek Subsea Engineering has Ball valves are predominantly used
Elaine Maslin reports.
developed an intervention system valve for this and are often used in series to
the Revolution Valve to address the compensate for their shortcomings, says
A
short-comings seen in current systems. Gavin Cowie, Interventeks managing
common plea in todays cash- Formed in 2014, the fi rms senior staff director.
strapped, low investment envi- have spent time at Expro, Furthermore, moves towards larger
ronment is for technologies that FMC Technologies, BP, bores and higher-pressure environ-
can help make the industry more efficient and Weatherford, among ments, and new requirements in API
or even do more at a lower cost. others. 17G, particularly around fatigue capac-
Small technology fi rms, often set up The Revolution Valve, ity, will only add to those pressures, he
by ex-operator or ex-major service fi rm which won the Emerging says. Interventek has designed a more
staff whove seen and grabbed the op- Technology Award in compact valve that can cut and seal in
portunity to do things differently, last years Offshore one movement, while having separate
cutting and sealing components to avoid
damage to either.
The fi rm has a license agreement
with Hunting, which has already been
successfully using the valve in the field.
The fi rm has also made a deal to supply
6.375in 15,000psi in-riser Revolution
Valves to Louisiana-based Professional
Rental Tools (PRT) to service the Gulf of
Mexico.
The starting point was a recognition
that valves in the market place were
not suitable, Cowie says. There were
shortcomings with existing technology
and these were becoming more appar-
ent as industry increased requirements
for larger bores and higher pressure
applications. In some cases, this had
led to systems being built entirely from
expensive exotic alloys, because of the
larger bore size, but the same outer re-
striction, resulting in little wall section
to play with.
The existing arrangement has been
around a long time, he says. Ball valves,
which rotate to create an open bore, or
close it off, were used, with the edge of
the bore used to cut then contain as it
closed, using O-ring type seals.
Historically ball valves were used,
but they are built as containment de-
vices. The process of cutting an inter-
vention medium would damage the seal
surface, Cowie says. These valves were
OK for 3in, 5000psi bores, but have be-
An in riser valve assembly, above, and landing string system, right. come challenged with larger bore sizes
Images from Interventek. and higher pressures, as well as issues
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control
tiebacks to date (Peregrine and Solitaire).
The development, which came onstream
in October 2014, under budget and ahead
of schedule, has 19 wells, comprising of
14 producers and five water injectors.
All were completed with fiber-optic
Inflow control valves and in- connectivity and aquifer support, care- downhole distributed pressure and
ful consideration had to be given over temperature monitoring. Most have intel-
well fiber-optics have given how to develop the field. ligent completions, i.e. interval control
Nexen far greater visibility of Nexen Petroleum UK opted for so- valves (ICVs). The two subsea satellites,
called intelligent well technology, using north and south drill centers, also have
whats going in and out of their interval control valves, which allows for production and injection wells with
reservoirs on the Golden Eagle different reservoir zones to be opened fiber-optic intelligent completions.
and closed remotely. The technology, The main reason for using intelligent
field. Elaine Maslin reports. which includes fiber-optic sensing, completions was the reservoir, which
meant Nexen could reduce the number is two different formations, Punt and
W
of wells it needed to drill on Golden Burns, says Craig Durham, production
hen the Golden Eagle field Eagle. Using this technology has also engineering advisor at Nexen.
was discovered in 2007, it given Nexen far more information about The Burns reservoir is the oldest, and
was one of the biggest oil its reservoirs than it would have with underlines the Punt sands a former
discoveries in the UK North Sea, after the conventional well completions, reduced meandering riverbed, which makes it
huge Buzzard field. intervention requirements and meant quite layered and connected in different
But, with a complex reservoir and the waterflood could be tracked and ways, Durham says. Burns is a larger
some uncertainty over the level of managed more efficiently. area, connected to a large aquifer that
gives pressure support, but is not con-
nected to the Punt sands, which rely on
water injection to produce.
Managing this scenario would be,
very difficult without intelligent tech-
nology, without being able to control
flow from separate zones and being
able to inject into separate zones. This
is why we went for intelligent technol-
ogy, Durham says. All the wells were
completed with fiber-optic, downhole
pressure, temperature and flowrate mon-
itoring for the production wells. Most of
our wells are intelligent wells.
Downhole
In the reservoir section in a normal well
that requires sand control there would be
a production packer, some sand screens,
maybe some open hole isolation, Durham
says. In an intelligent well, on the other
DRILLING
On Golden Eagle, Nexen divided up the reduce any thermal fracking effect in the moved in just hours, in theory, although
sand face section into three separate zones. reservoir due to the shock from the cold Durham says, in reality, ICV moves
We still have a production packer and water coming in, as well as being able to are planned a few weeks in advance to
we still have pressure, temperature and vary how much is injected into each zone. ensure that the maximum amount of
flowrate monitoring at the top, but we also The ICVs are controlled using information is obtained from the move.
have an interval control valve (ICV) im- SmartWell Master, which allows the
mediately under the first packer, Durham operator to select a position at the click Learnings
says. We still have sand screens and open of a mouse and SmartWell Master sets To date, 19 wells have been drilled on
hole isolation. But, then we have a second out the control sequence to open or close Golden Eagle, four of those are subsea.
ICV and second pressure, temperature and the sleeve. The operator has a screen Some 36 ICVs have been fitted, 10 of
flowrate monitoring and so on into those are subsea. The wells
the third zone. contain a total of 14 optical flow
Intelligent wells are more
The number of zones is limited meters, three of which are in
to three because the ICVs have expensive compared to a normal subsea wells, and 164 fiber-optic
hydraulic controls; the number of well with more rig time and sensors.
control lines that can physically fit Just over 100 ICV moves had
hardware. But, overall, theres
into the tubing hanger and across a been made, as of early December
completion is limited. lower total capex. 2016. The ICVs are moved every
Pressure and temperature data Craig Durham, Nexen six months as a minimum, to
are gathered from the tubing side, prevent sticking, and to gain
but also the annulus, so that if a zone is with just the valve status, while produc- opportunistic data. Forty of those moves
shut in, engineers know what the reservoir tion engineers get all the data they want; were in the subsea wells. About 20 pres-
pressure is. The fiber-based distributed pressures, temperatures, flowrates, what sure build up analyses have been done
temperature sensing system (DTS) runs flowrate is going through each sleeve, on individual zones, as well as four
along the length of the liner string, and etc., viewed through an integrated visu- water injection distributed temperature
provides useful information for inflow per- alization and management system. surveys and a couple of temperature
formance, because temperature changes at We can see temperature on each transience analyses, Durham says.
different flow rates in the well. These data zone, annulus and tubing side, the pres- Its not all been perfect. The ICVs have
supplement information from the single sure drop across the sleeve, the down- not been moved, on the fi rst subsea well,
downhole flowrate meter, which only gives hole flow meter, what the measured due to subsea control line contamina-
a cumulative rate not what is coming rate is and what the calculated rate is, tion, he says. The fiber-optic sensors
through each zone. Durham says. Five different methods also failed on the same well, due to
The DTS is especially useful on the are used to estimate what the flowrate an issue with the wet mate connector.
water injection wells, because of the geo- should be and its compared with the Because different computer systems
thermal temperature gradient when you downhole meter and shown in green if control the ICVs from the rest of the
shut a well in and get warm back. The theyre within 5%, to ensure everything platform, the interface between the two
well heats up in quite close proportion is as it should be. has sometimes tripped, requiring an en-
to how much water has been injected, gineer call-out to reset. But, this is still
Durham says. Through thermodynam- Benefits much cheaper than sending a 12-man
ics, heat conductivity etc., were able to A big benefit of the ICVs, with moni- wireline crew out for an intervention
quantify, almost to production logging toring, is flexibility, Durham says. In to achieve the same result in a conven-
standards, what the percentage injection a normal well, if you set an isolation tional well, Durham says.
is into these zones. This includes subsea plug to isolate water breakthrough, you And, thanks to these tools, 40 dif-
wells, where production-logging quality isolate production, too, so its not very ferent zones on Golden Eagle are being
data can be gathered, without having to efficient. In later life, you might want produced from only 19 wells, which
intervene in the well, in any way. to take these plugs out to get the last oil has helped reduce the well count, and
Its not quite as simple on the produc- out, but they might not be easy to get enabled greater reservoir management,
tion wells, where the temperature trend out, Durham says. understanding and operation.
is not as great and the quality of the A zone can be shut, and the annulus Intelligent wells are more expensive
DTS resolution is not as good. But, this gauge monitored, and re-opened. If you compared to a normal well with more
is being worked on, Durham says. They are injecting in a well a kilometer away rig time and hardware. But, overall,
are also doing temperature transient and see the pressure going up, you know theres lower total capex because weve
analysis, using the single point tempera- you have connectivity. From a reservoir completed fewer wells and theres re-
ture gauges and seeing how temperature management point of view, theres a huge duced opex as we will not need as many
changes in proportion to flowrate, which amount of information that you would interventions, Durham says.
has offered useful information. never have on a conventional well. Water Nexen Petroleum is owned by Chinas
cut from individual zones can also be as- CNOOC and operates Golden Eagle
ICU ICV certained and what injectors are connect- (36.54% interest) with partners Suncor
The ICVs themselves can have 10 posi- ing with which producers monitored. Energy (26.69%), Maersk Oil (31.56%)
tions, from fully closed to fully open, Instead of taking months and using up and Dyas EOG (4.74%) and Oranje-
making them chokable, which is useful a 12-man crew for a wireline operation Nassau Energie (0.46%).
Putting HSE
RFC-HSE
Unlike other variations, RFC-HSE is
specifically used to enhance process
in MPD
safety while drilling with conventional
fluids. RFC-HSE allows drilling to occur
Theres a growing in a closed-loop system; diverts return-
acceptance of MPD in ing fluids to the choke manifold; enables
offshore operations, early kick/loss detection; limits the size
of kicks/losses; allows the driller to per-
but are all options being form dynamic formation integrity tests
considered? Jerry Lee examines and leak-off tests; and provides riser gas
the RFC-HSE variation. mitigation capability.
To apply this MPD variation in the
N
GoM, rigs will require the basic MPD
orth America was the largest equipment mentioned above as well as
market for managed pressured Coriolis flow meters. For convenience,
drilling (MPD) in 2015, due to a programmable logic controlled choke
its extensive use in the Gulf of Mexico system and associated software, such as
(GoM), according to an April 2016 report SafeKicks SafeVision rig package, will
by research firm MarketsandMarkets. The Rig owned buffer manifold allow for automate the choke system and allow for
firm sees the trend continuing to 2021, the integration of MPD and Riser Gas more precise control of annular pres-
when it expects the global MPD services Handling systems. Photo from SafeKick. sure, at any depth in the well. In that
market to reach a sizable US$4.6 billion. situation, the choke control software
The GoM has benefited from MPD relying solely on hydrostatic pressure serves as the systems interface, allow-
technology, but to realize MPDs full [derived from the annular fluid column ing the driller to control the MPD sys-
potential, all applicable variations must during static (non-flowing)] condition, tem and model annular conditions. The
be considered. Constant bottomhole and to a certain extent annular fric- Coriolis flow meters, located at the inlet
pressure (CBHP) and dual gradient tional pressure [derived from a surface and outlet of the system, are sensitive to
drilling (DGD) have dominated the MPD resisting flow during dynamic (flowing)] variations in fluid density and tempera-
conversation, due to their ability to drill conditions, to keep formation pressures ture. By inputting data from the Coriolis
undrillable wells. These methods at bay. Normally, when hydrostatic flow meters into the control software,
have done well for pressure sensitive pressure is insufficient, issues arise (e.g. real-time wellbore analysis and control
situations. However, the returns flow non-productive time, stuck pipe, gas (including EMW) is enabled.
control variation for health, safety, and kicks, narrow fracture margins, loss of
the environment (RFC-HSE) may be well, etc.), however, now these issues Process safety
more applicable. Unlike CBHP and DGD, may be mitigated with MPD. When the RCD is closed, a closed-loop
RFC-HSE is only used with convention- MPD creates a closed-loop system and system is created, like a pressure vessel,
al (overbalanced) mud, which means enables the driller to manipulate surface giving the driller better control over the
conventional drilling operations can back pressure (SBP) to manage the annular annular pressure profile than an open-
take advantage of MPD benefits. hydraulic pressure profile. The minimum to-atmosphere system would. The closed
equipment required is a rotating control RCD also diverts the returning fluids to
MPD device (RCD), a choke manifold, and at the choke manifold, away from the drill
Well control methodologies have mini- least two drill string non-return valves. floor where rig hands are working.
mally evolved since the early 1900s, Positioned above the blowout preventer If there are changes in mud flowing into
DRILLING
will immediately recognize and display ty to control the amount of flow from the with RFC-HSE, such as well breathing
the change: more volume flowing out of riser. Additionally, if is sized properly, identification, ability to circulate out
the system than in may represent a kick; the RGH is the key component that en- small influxes at drilling flow rates, the
more volume flowing into the system than ables MPD to be deployed on a floating ability to monitor tripping operations,
out may represent losses. This devia- rig, says Mark Mitchell, president, oil mitigation of wellbore instability issues,
tion acts as an early kick/loss indicator, and gas, AFGlobal. and the ability to provide managed
allowing the driller to react to the event Our riser gas handling system is pressure wellbore strengthening and
quickly and in real-time. In response to the essential building block for MPD managed pressure cementing.
the volume flow deviation, the driller in deepwater, Mitchell says. From an
would only need to increase the choke equipment standpoint, it gives you the BSEE well control rules
pressure increasing the SBP and EMW platform to install the RCD, the flowpath New well control rules from the US
to stop or minimize the kick, or decrease needed for MPD, as well as serving the Bureau of Safety and Environmental
the choke pressure decreasing the SBP function as a riser gas management tool. Enforcement went into effect July 2016.
and EMW to stop or minimize flow into With an RGH installed in the riser, These rules are intended to increase
the formation, resulting in a smaller kick an RCD can be integrated into the riser offshore safety. Although, some rules
or loss size that the crew needs may inhibit some drilling
to manage. operations. One such rule,
In comparison, conventional Section 250.414(c), requires
methods require visible chang- the implementation of a
es in mud tank for kicks/losses 0.5ppg drilling margin
to be identified, which would unless the operator can
be in barrels, rather than the justify deviating from the
gallons it would take an MPD drilling margin through
system to identify. supplemental data and oth-
Furthermore, because SBP er documentation which
can be manipulated while the could result in previously
system is f lowing, dynamic drillable wells becoming
pore pressure tests, dynamic undrillable. However,
formation integrity tests and regulators specifically
leak-off tests can be performed. changed the 0.5ppg margin
With these capabilities, the from static mud weight,
d r iller ca n ascer ta i n more to EMW, which seems to
information about the well, invite the use of MPD.
decreasing uncertainty and risk. This is good news for US
GoM operators, however,
Riser gas mitigation because CBHP and DGD
Riser gas can be troubling for operations are still only
any drilling operation using approved on a case-by-case
subsea BOPs. If gas gets into the basis. On the other hand,
riser, it can quickly come out since RFC-HSE is used
of solution, expand, and lead to augment conventional
to an unloading event, which Rig owned MPD choke and meter manifolds. Complete with duel drilling programs, it would
can cause a blowout, collapse 3in and 6in chokes and duel 8in Coriolis meters. Photos from SafeKick. not require pre-approval,
of the riser, or environmental allowing drilling contrac-
and legal issues, says Bo Anderson, vice string, above the DSIT. Then, when the tors to freely utilize this technique to
president, advanced drilling systems, RCD bearings need to be replaced, the operate more safely, and potentially use
AFGlobal. However, with a riser gas han- DSIT will isolate the RCD and the flow- some of the fringe benefits of MPD.
dling system (RGH) installed in the riser spool will redirect the returning fluid. Rigs equipped for RFC-HSE MPD
string, the risk can be greatly mitigated. These necessities not only result in an could capitalize on the 0.5ppg EMW
An RGH system is comprised of a inherent riser gas mitigation capability, drill margin, drilling wells closer to bal-
drillstring isolation tool (DSIT), a flow- but when combined with the flowme- anced pressure, which improves drill-
spool, and riser crossover joints. ters, like those used in RFC-HSE MPD, ing efficiencies. In addition, if an influx
Integrated into the riser using the the driller also has a riser gas manage- occurs the drillers response could then
crossover joints, the DSIT can close the ment tool. With the flowmeters provid- be based on the real-time information
annulus between the riser and drill- ing early kick detection, influxes can be about the mud weight, rather than rely-
string and redirect the returning fluids seen early, allowing the driller to start ing on old pre-drill estimates. Applying
through the flowspool. The flowspool, thinking about and making accommoda- SBP would increase EMW above the
which has two exiting lines, can then tions for handling them, Anderson says. formation pressure, which would not
divert the flow to the rigs mud gas sepa- Riser gas management then changes only stop the influx, but would also al-
rator or to a choke, allowing control over from a reactive solution to a proactive low the actual formation pressure to be
the pressure seen at surface. With this solution, Mitchell adds. determined.
Southeast Asia
Stepping on the
gas While Southeast Asia has suffered
during the downturn, a return to
natural gas developments could
drive sector activity over the next
several years. Steve Hamlen sets
out the details.
[enhanced oil recovery] production sharing
contract (PSC) that offered more favorable
terms for those higher extraction costs for the
lower volumes you would get out of such a
field, Cook adds. This could be something
that Indonesia might look to do in the future.
Cook says that the future for Southeast Asias
offshore sector is natural gas. And, indeed,
upcoming projects such as Chevrons IDD
project and Enis Jangkrik in Indonesia, as well
as the Petronas-operated Kasawari and Rotan
floating LNG project offshore Malaysia, are all
gas developments.
S
cause the market has not been there for them.
outheast Asias upstream offshore oil and gas sector has Now, there certainly is the market. Japan is a huge importer
been suffering in the low oil price environment and of LNG, as is South Korea. These markets are on Southeast
even though it seems that few final investment deci- Asias doorstep.
sions (FIDs) will be made in the region this year, some devel- In terms of oil, Indonesia and Malaysia both struggle with
opments outside of traditional powerhouses Indonesia and it. There have not been major oil discoveries in the region and
Malaysia are making good progress. there will not be any major oil developments in the next five
or six years, for example, Cook says. Projects like Chevrons
Indonesia and Malaysia hit hard West Seno, in deepwater offshore East Kalimantan, Indonesia,
In terms of South Asia, there are defi nitely some countries were the last wave of oil developments offshore. The last few
struggling with the current environment, says Matt Cook, were Shells Malikai and Gumusut-Kakap [both off Sabah,
lead analyst for drilling and production forecast at consul- Malaysia]. There is nothing of that sort of size coming up for oil
tants Wood Mackenzie. Indonesia, in particular, has been hit in Indonesia or Malaysia everything seems to be gas-focused.
hard because a lot of the fields there are very mature, requir-
ing secondary and tertiary extraction methods. The country Myanmar exploration surge
has really struggled with attracting new investment, even Weak interest in recent licensing rounds and budget cuts are
before the oil price crash, so it has been compounded because pointing to a bleak year for exploration in Asia-Pacific with
of that. Wood Mackenzie expecting around 50 wells to be drilled this
Regarding mature fields, Malaysia introduced an EOR year, which would be a decline of 70% from 2014 levels.
Rystad: Indonesia, Vietnam to lead FIDs recent project news flow to assess candi-
Rystad Energy forecasts projects hold- offshore volumes sanctioned during 2017. date projects chances of attaining 2017 FID.
ing 512 MMboe of recoverable liquids and This would be a significant drop from the Despite lower volumes expected to be
gas resources could potentially reach 1835 MMboe sanctioned in these regions sanctioned compared to 2016, the count of
final investment decisions (FIDs) within during 2016, though this trend is skewed potential FIDs is higher in 2017. The greater
Australia and Southeast Asia during 2017. by two gas megaprojects BPs Tangguh diversity in project sizes could be a boon,
After 2016s heavy gas binge (88%), expansion in Bintuni Bay of West Papua, particularly to smaller service players.
2017 sanctions are assessed to have a Indonesia, and PetroVietnams Block B-O Rystad Energys 2017 FID forecast
slight liquids flavor (58%). Indonesia Mon project offshore Vietnam, says Readul shows that the Australia & Southeast Asia
and Vietnam are expected to lead these Islam, senior analyst, Rystad Energy. regions certainly havent gone into slumber
regions, accounting for almost 75% of The two gas projects account for around following the price slump. The upside and
the potential 2017 approvals. Most of the 75% of the 2016 FIDs in volume terms. The downside risks to the FID forecast means
volumes fall within the offshore shelf (up Rystad Energy 2017 FID forecast is the all stakeholders will be eagerly following
to 125m water depth) segment, though result of balancing project operator/part- the development of 2017 approvals in these
Australia could see more onshore than ner/industry expectations versus following regions, Islam says.
Southeast Asia
Natuna under
pressure Steve Hamlen profiles the East Natuna
gas field offshore Indonesia.
CELEBRATING ITS
SUPPORTED BY
PRODUCED BY ORGANIZED BY
Offshore Engineer
Southeast Asia
Resources Director-General for Oil and Gas, last year. We Natuna discovery would require additional capital costs of
hope that it will start before 2030. Giving an honest apprais- about $5.975 billion (in 2010 dollars).
al, Wiratmaja noted: East Natuna is a special block, as it has The extra annual operating costs would be approxi-
big reserves and high CO2 content. With current technology mately $180 million/yr and the additional decommission-
and prices, the project is not economical. He said that the ing costs would be about $1.470 billion incurred after a CO2
project would only be economically developed when the price injection period of 75 years.
of oil reached more than a lofty $100/bbl. That level is some
way off, even according to the most optimistic crude price Geology
forecasts. The East Natuna structure is a middle-to-late Miocene
platform reef carbonate and lies around 200km northeast of
Development options Natuna Island in the East Natuna Basin.
The main problem is Natunas high CO2 content gas, which The geological composition of East Natuna is, a large
requires the development of advanced technology to separate structural stratigraphic hydrocarbon trap and is unique
and re-inject the CO2 back into the reservoir. This will make in areal extent and reservoir thickness among the various
production costs much carbonate traps, which are
higher than more con- present in many Southeast
ventional gas reserves,
let alone shale gas.
The data from the seismic Asian basins, said geo-
science fi rm PGS, which
Development solu- survey will enable companies completed the acquisition
tions have been evalu- of a high defi nition MC3D
ated over the years and to make detailed reserve survey on the field area in
the current favorite is
assessments, as well as 2010.
a subsea pipeline con- The data from the
cept, because it is the identify the main depositional seismic survey will enable
most cost-effective way companies to make detailed
to get gas to market, bodies and producing reserve assessments, as
while an LNG project intervals within the well as identify the main
would hike the costs depositional bodies and
too much. carbonate reservoirs. producing intervals within
O ne upside of a n the carbonate reservoirs,
LNG project is that it PGS adds.
would make the gas eas-
ier to transport to numerous Learning process
locations around Indonesia, as well as export further afield. Pertamina has said the ideal form of partnership on East
However, although pipelines can only go to a fi xed position, the Natuna, with ExxonMobil, Total and PTTEP, would be like
planned and existing pipeline infrastructure in the region would that between Norways Statoil and supermajor BP, which
allow the transport of East Natuna gas to Indonesia, Malaysia, helped Statoil gain knowledge and expertise in deepwater
Thailand and Singapore. operations.
If the pipeline option is followed, the East Natuna gas Pertamina is hoping its partnership for East Natuna will
field could start producing at 1 Bcf/d (28.33 MMcm/d), with help it gain knowledge and skills that it will be able to apply
peak output to reach 4 Bcf/d (113.3 MMcm/d), ExxonMobil on other projects in Indonesia, such as the Mahakam Block.
said. Peak production could last for at least 20 years before it But, fruitful relationships havent been forthcoming to
started to decline. date. In 2006, Indonesia revoked the East Natuna license
The current estimate for Pertamina to build pipelines for from ExxonMobil on the grounds that the US player failed
the East Natuna development, including linking the pipelines to provide a feasibility study for the proposed development
into the Southeast Asia regional network for export, is about within the time frame of rules set out by a production sharing
$24 billion, said Infield Systems, although other estimates contract, which was awarded in 1985 and amended in 1995.
from industry analysts suggest this will cost around $40 Following numerous issues with red tape and lengthy talks
billion. with various government departments as well as upstream
This is a wide gap in estimates, but to give some clarity, watchdog BP Migas (since disbanded and relaunched as SKK
capital expenditure on the East Natuna project itself, up to Migas) over the years, the latest partnership still includes
2022, has been estimated at around $11.6 billion by Infield ExxonMobil.
Systems. The partners remain keen to make progress on this troubled
And, then, there are the costs of CO2 removal, on which project despite the long list of problems that will surely pro-
the Global CCS Institute said: The addition of CO2 trans- vide further roadblocks along the way. Given the obstacles to
port and injection facilities to the development of the East overcome, 2030 may come along all too quickly.
Gearing Up
for the FUTURE
Global
7th Annual
forum
an Event
Represented industry expertise are: Hull, Topsides. Mooring, Operations, EPC, Regulatory,
Class Society And Engineering/Consulting Firms.
globalfpso.com
Organized by: Produced By:
shore Engineer
REGIONAL OVERVIEW
Southeast Asia
Adding up
SE Asia activity
Southeast Asia is expected to receive record levels of offshore
investment, fueling the expansion of the regions upstream
industry. EICs Angeline Elias outlines the hotspots.
Active Future
40
are 20+ years old the average life expectancy of offshore
assets. Malaysias Petronas and Thailands PTT Exploration
0
Exploration EPC FEED Conceptual Pre-FEED
and Production Public Co. have already listed platforms to be
Design decommissioned and feasibility studies are under way.
OTC PREVIEW
Photos from Offshore Technology Conference (OTC).
T
and Electronics Engineers, Oceanic and
he 2017 Offshore Technology development. Shell and SBM Offshore Engineering Society (IEEE-OES), Marine
Conference (OTC), the annual will discuss the Turritella, which is the Technology Society (MTS), Society of
four-day event taking over the entire worlds deepest floating produxtion unit, Exploration Geophysicists (SEG), Society
NRG complex in Houston, has crafted its and second FPSO in the Gulf of Mexico. for Mining, Metallurgy, and Exploration
technical program to invite discussion Later that day, Shell will take the stage Inc. (SME), Society of Naval Architects
on ways to cope with the new normal. to go over the Stones project, including and Marine Engineers (SNAME), Society
As one of the worlds largest oil and gas FPSO installation work, development, of Petroleum Engineers (SPE), and The
conferences, OTC brings together energy safety, and the subsea, umbilical, riser Minerals, Metals, and Materials Society
leaders and professionals from around the and flowline systems. (TMS).
world to discuss the industrys latest tech- On Wednesday, 3 May, Pemex Supporting organizations include:
nological advances, todays environment, CEO Jos Antonio Gonzlez Anaya American Association of Drilling
and ideas and strategies on how to adapt. will discuss the next five years of Engineers (AADE), American
Technical highlights for the conference the Mexican Energy Reform. Other Petroleum Institute
include updates on mega projects, such as discussions will cover the UK North (API), Association
Shells Stones and BPs Mad Dog of Energy Service
OTC 2016 by the numbers:
in the Gulf of Mexico, as well as Companies (AESC), ASTM
68,000 The number of attendees OTC attracted
Totals Moho Nord, which came on- (94,700 in 2015, down 28%) International, Center for
line in mid-March. Other featured Offshore Safety, Independent
120 The number of countries OTC attendees represented
topics will include adapting to the (130 in 2015) Petroleum Association of
low oil price environment; safety 2600 The number of companies that exhibited America (IPAA), Institute of
and risk management; renewables; 672,300sq ft The amount of sold-out exhibit space in
Marine Engineering, Science,
and the digital revolution. OTC history and Technology (IMarEST),
On Monday, 1 May, the break- 325 The number of technical papers presented International Marine Contractors
fast sessions at OTC start off 11 The number of panel sessions
Association (IMCA), International
with a look at challenges facing Society of Automation (ISA),
24 The number of executive keynote speakers
operators in the deepwater Gulf National Ocean Industries
13 The number of technologies recognized for innovation
of Mexico, entitled A Fresh Look Association (NOIA), and Research
at the Gulf of Mexico: How Oil and Gas Sea with ExxonMobil; Vietnams plans Partnership to Secure Energy for
Companies Can Adapt to the New Chal- to open deepwater acreage, featuring America (RPSEA).
lenges of Operating Safely and Efficiently PetroVietnam; and Mauritania and Endorsing organizations include: the
in the Deepwater. Other breakfast Senegals new offshore gas develop- International Association of Drilling
sessions include a look at new business ments, featuring Kosmos Energy. Contractors (IADC) and Petroluem
opportunities in Brazil, and Indonesia. On Thursday 4 May, discussions will Equipment & Services Association
The rest of the day includes profiles on continue regarding Mexicos deep- (PESA).
the aforementioned Moho Nord, BPs water opportunities with Chevron, OTC takes place 1-4 May 2017 at
Mad Dog, and cost-effective solutions for ExxonMobil, Statoil, BHP Billiton, and Houstons NRG Park complex. For more
oil and gas. Murphy Oil. information on OTC, including the
On Tuesday, 2 May, two technical ses- OTC will host the Distinguished full conference and events, visit
sions will be dedicated to Shells Stones Achievement Awards Luncheon on 2017.otcnet.org.
adaptive drillbit sitions between rock types or sections. When the risk of stick-slip
has passed, the elements retract, enabling drilling to resume at
Baker Hughes launched its TerrAdapt adaptive drillbit, which uses a maximum ROP. The elements also absorb any sudden shock to
self-adjusting depth-of-cut (DOC) control elements to automati- the bit face, reducing damage to the TerrAdapt bits cutters and
cally change its aggressiveness based on the formation it is drilling other BHA hardware and electronics. www.bakerhughes.com
COMPANIES
2017 Offshore Achievement Winners named
The Society of Petroleum Engineers (SPE) the oil and gas and renewable industries,
Aberdeen Section honored 12 companies and said Donald Taylor, acting managing direc-
individuals at the 2017 Offshore tor, TAQA Europe. It is encourag-
Achievement Awards, held in ing to see so many companies
late March. Oonagh Werngren and individuals taking the time to
was presented with the accolade share their success stories. The
for Significant Contribution. winners demonstrate a diverse
Werngren was recognized range of significant achieve-
for her work , including her ments, showing just how much
former role as operations director at Oil the industry is still driving forward, finding
& Gas UK where she was responsible for innovative solutions and efficiencies.
establishing several pan-industry projects OE is a media sponsor for the Offshore
to increase exploration and production in Achievement Awards.
the UK Continental Shelf. Werngren previ-
ously served as president of the Petroleum The 2017 Offshore
Exploration Society of Great Britain, one of Achievement Award winners:
only two women to hold the position in over Emerging Technology Awards - Sponsored
50 years, and has held non-executive director by Nexen M-FLOW Technologies
roles for OGIC (the Oil and Gas Innovation Innovator Award - Sponsored by Oil & Gas
Centre) and ITF (the Industry Technology Oonagh Werngren
Innovation Centre Delphian Ballistics
Facilitator), as well as The Girls Network.
Safety Innovations Award - Sponsored by Young Professional Award - Sponsored by
Other winners included JDR Cable
Offshore Europe Partnership Cape plc BP Marianne McKevitt, BP
Systems, (Export Achievement and Great
Environmental Innovation Award Exnics Above & Beyond Award Sam Lisney,
Large Company), and Enpro Subsea (Great
Export Achievement Award JDR Cable Petrofac EPS, West
Small Company).
Individually, Marianne McKevitt, of BP, Systems Ltd. Great Small Company Award - Sponsored
received the Young Professional award, while Collaboration Award - Sponsored by by Wood Group Enpro Subsea
Sam Lisney, of Petrofac EPS West, was named Marks & Clerk Maersk Oil/Amec Foster Great Large Company Award JDR Cable
winner of the Above & Beyond category. Wheeler/Bilfinger Salamis Systems Ltd.
Once again, the Offshore Achievement Outstanding Skills Development Program Significant Contribution Award -
Awards has been a great showcase for the Award - Sponsored by Heriot-Watt Sponsored by Aker Solutions Oonagh
strength, creativity and ambition we see in University TAQA Werngren
Wood Group to acquire Subsea 7 in Seaway Heavy lifting and decommissioning services.
Amec Foster Wheeler Lifting takeover These are areas where we expect activ-
Wood Group has made a US$2.72 bil- Subsea 7 has fully acquired Seaway ity to increase and see potential to grow
lion (2.22 billion) offer for rival Amec Heavy Lifting following the purchase of our market share, says Jean Cahuzac,
Foster Wheeler. The takeover bid comes 50% stake from K&S Baltic Offshore, in CEO, Subsea 7.
just three years after Amecs 2014, $3.2 a move that will increase its position in
billion acquisition of Foster Wheeler. the renewables, heavy lifting and decom- Boskalis sells all Fugro shares
The deal has been agreed to by both missioning markets. Dutch maritime services fi rm Boskalis
companies boards and is expected to Subsea 7 signed and completed the has sold all of its remaining stake in fel-
complete in 2H 2017. US$279 million deal in early March, low Dutch engineering and geoscience
Analysts Rystad Energy said that making the offshore contractor, which services fi rm Fugro. Boskalis went from
the merger will, create a clear mar- operates two world-class heavy lift ves- owning 28.6% stake in Fugro at the end
ket leader within the engineering sels, and its subsidiaries wholly-owned of 2015, to 9.38% in December. Fugro
and maintenance, modifications and by Subsea 7. An additional consideration has been fighting to remain indepen-
operations market, with a market share of up to $40 million will be paid in 2021 dent since Boskalis began buying stock
twice as large as its competitors. With on the condition that certain perfor- in the company in 2014. In December,
a combined workforce of 64,000, it will mance targets are met, the company said. Boskalis CEO Peter Berdowski said of
rank as one of the top 15 oilfield service Prior to the takeover, Seaway Heavy the decision to wind down its stake:
companies in the world. Lifting was a joint venture company [This is] based on the uncertain market
Robin Watson and David Kemp, Wood in which Subsea 7 held a 50% interest. conditions, which continue to prevail
Groups CEO and CFO, respectively, will Subsea 7 said that consolidating Seaway much longer than anticipated, and on
continue as CEO and CFO of the newly into the group strengthens the com- the other hand, also the position of the
combined company. panys position in renewables, heavy Fugro management.
An engineers engineer
Steve Hamlen catches up with Tony Trapp, [Reece] set the company up with the idea of exploring what
executive chairman of Osbit, and subsea industry we were working on.
pioneer who recently won the MBE (Most North Sea oil
Excellent Order of the British Empire). Reece enticed Trapp and Tim Grinsted, all PhDs from
Newcastle University, to start SMD. It turned out to be timely;
Repurpose editorial content for distribution Scharmann Alpha 1000M Pinole Horizontal Machining Centre
with Sinumerik 740D Control (2007)
Electronic Reprints Toshiba BTD 110 R16 Twin Pallet Horizontal Boring Machine (1998)
Daewoo Ace Series HM630 Horizontal Machining Centre (2006)
Daewoo Ace Series HM630 Horizontal Machining Centre (2001)
High-Quality Glossy Handouts Daewoo Puma 500 CNC Turning Centre
Boehringer Type Due 800 Lathe
Personalized Direct Mail Products Qty Cogsdill Boring & Slide Tools
Various sized Overhead, Freestanding and Jib Cranes by Abus,
Cross Media Marketing Crane Care, Demag, & Morris SWL: 500kg with 3.2-Ton
Idea IM 180 H/S Machine Wash
Mannings Oven
Plaques & Framed Prints Bode 3/RMB 2.6m x 2.5m Multi-Clad System (2007)
PEC Multi-Clad System (2000)
Large Qty Dynamic Shelving
Vivex VXCS 1500 Cleaning & Recycling Plant (2000)
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e-mail signatures, media advertising, annual reports, and
investor relations.
oedigital.com C: 56
April 2017 | OE 63
M: 0
Y: 100
K: 27
Editorial Index
INDEX
an Event
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Organized by: Produced By:
shore Engineer
Whats next
Coming up in OE May Editorial Focus
Feature Global Deepwater Review
EPIC Abandonment & Decommissioning
Subsea Subsea Processing, plus: Risers and Umbilicals
Production EOR/IOR
Drilling HPHT
Special Report: Automation (Big Data, Security, Remote
Operations)
Regional Overview Gulf of Mexico
Bonus Distribution
Offshore Technology Conference
May 1-4, 2017
Houston, Texas
BPs Thunder Horse development in the Gulf of Mexico. Photo from BP.
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